Gaikai, an L.A.-based gaming startup, just sold to Sony. It was engineering talent that made the company successful.
Nate Redmond, the managing director of L.A.'s Rustic Canyon, an early stage venture capital firm, had a must-read piece at TechCrunch over the weekend. Taking as his jumping-off point Sony’s purchase of of gaming startup Gaikai for $380 million (Rustic Canyon was an investor), he makes a case that something important is happening on the Los Angles startup scene:
LA has once again become a hotbed for technical leadership, as indicated by the flurry of investment activity. Entrepreneurs in the LA region attracted $567 million in venture capital in the first quarter of this year, 50% greater than the NY Metro area in the first quarter of the year, according to PriceWaterhouseCooper’s Money Tree report. Between the outstanding technical talent and the passion and vision of great founders, those dollars are being invested into technology-driven companies that break the stereotype of startups in LA.